Poverty in India

ISC Class 11

1. The Problem of POVERTY in India ISC CLASS - XI

2. WHAT IS POVERTY & WHO ARE THE POOR? Poverty is the inability to fulfill the minimum requirements of life. Man who can’t fulfill these requirements are poor. Generation after generation they live in poverty, grow in poverty and die in poverty. Poverty breeds itself or multiplies itself.

3. HOW ARE POOR IDENTIFIED? Poverty Developed Countries Relative Poverty Developing Countries Absolute Poverty

4. RELATIVE POVERTY In relation to different classes, regions or countries . Level of Subsistence Countries having PCI < 1 US$ / Day [UNO] India’s PCI is about $736 / Annum In terms of inequality of income within the country IN INDIA, 20 % of High Income Group – 45.3% 20 % of Low Income Group – 8.1%

5. ABSOLUTE POVERTY It refers to a situation in which a person’s income is less than what is required to meet the bare necessities of life at the current prices. Method A person with a daily income < 2US$ - Poor A person with a daily income < 1US $ - Very Poor

6. WHAT IS POVERTY LINE? Minimum necessary level of income is generally known as poverty line. It refers to a cut-off point (usually in terms of per capita expenditure) which divides people of a region as poor and non-poor. Percentage of population below poverty line is called ‘head count ratio’ or ‘poverty incidence ratio’. India’s Planning Commission has adopted a different standard to fix the poverty line.

7. Vicious Circle of Poverty I

8. Vicious Circle of Poverty II Note: Vicious Circle of Limited Market

9. Vicious Circle of Poverty III Note: Vicious Circle of underdeveloped human & capital resources

10. VICIOUS CIRCLE OF POVERTY Low Income, Asset & Education Lack of Capital & Lack of in Demand Skills Lower Capacity to Generate Income Low Security Cover from Economic & Health Risks Debts & Further Loss of Income

11. CAUSES OF POVERTY Rapid Population Growth Among the Poor Low Rate of Economic Development Unemployment Growth Strategy Inequalities of Income Little Trickle Down Effect of Economic Development Backwardness of Agriculture Inadequate Anti-poverty Measures Low Education Inflationary Rise in Price Socio-cultural Factors Political Factors

12. Government’s Policy Economic Growth Agricultural Development Development of Cottage and Small-scale Industries Population Control Land Reforms Public Distribution System Poverty Alleviation Programmes